Music, music, music - with no copyright troubles

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There's a popular gift that could have the recipient gone for a
song, writes Alex Malik.

AS CHRISTMAS approaches, this season's No.1 gift looks set to be
Apple's iPod. But be warned: by buying someone an iPod you may be
limiting their content choices and you may also be buying legal
trouble.

Apple's iPod has been greeted by the recording industry with
almost a messianic fervour. Yet the iPod does not come with
pre-loaded music. You can't just plug it into the wall and listen
to it - first you have to transfer digital music files to the iPod.
So, where can you get this music from?

The simplest choice is to use your computer, to digitally
transfer (or "rip") CDs you already own. In this way you can make
the digital equivalent of a compilation tape, selecting all of the
songs you like and want to listen to and leaving out the
"filler".

The problem with that is it is illegal in Australia to make
copies of CDs without the permission of the record companies that
own the copyright in sound recordings. It doesn't matter if you
have bought the CD - you haven't bought the right to copy the CD.
So most of those home-recorded audio cassette "mix-tapes" and CD
compilations are illegal. This will hopefully change in the future.
The Federal Government is holding an inquiry into Australia's
copyright laws, and may introduce a "fair use" exemption under the
Copyright Act which will allow you to legally copy your CDs.

The other choice for iPod owners is to obtain the music from a
digital download service. The problem is that while companies such
as ninemsn, Telstra and Destra provide authorised paid music
downloads, these downloads are typically in a format that cannot be
played on iPods. It is possible to download an internet "patch" to
convert files into iPod-compatible MP3s, but in doing so you may
breach the copyright attached to Apple's proprietary system. It is
also possible to take your non-iPod sourced music download, burn it
onto a CD, and then re-rip it so you can play on your iPod. But
this is a time-consuming approach and may result in a loss of sound
quality. So what's legally left?

Owners of iPods seeking music from the "major" record companies
are effectively forced to use Apple's new digital music service,
iTunes, putting a great deal of power in the hands of Apple. Apple
not only provides the hardware to consumers, it also effectively
provides the only legal means of obtaining and transferring the
content to your hardware. So by giving someone an iPod, you are
also effectively locking them into iTunes.

At best iTunes can be described only as a partial digital music
service since it does not include content from several independent
record companies, as well as from Sony/BMG, one of the biggest
recording labels. As far as local acts are concerned, the absentee
list includes Alex Lloyd, Anthony Callea, Pete Murray, the Rogue
Traders and Shannon Noll. And, iTunes has significant gaps in
available back catalogue.

Consumers can't get access to the US iTunes site, which has a
larger range of available product than the Australian site, because
Apple and the big record companies have adopted a system of
regional zoning. This means that iTunes can charge different prices
for downloads in different markets.

We're a tolerant bunch, because Australian consumers will pay
about 30 per cent more for digital downloads compared to US
consumers. Yet an Australian iTunes digital download of Don't
Cha by the Pussycat Dolls is identical to a download of the
same song in the US. Apple is yet to explain how this price
difference arises.

Given the lack of repertoire, consumers may be tempted to use
the internet to obtain unauthorised MP3 downloads that they can
then play on iPods. In an environment of rampant record company
lawsuits this could be risky.

But faced with a partial digital music service and price
gouging, who could blame consumers for taking the risk?

Alex Malik is a lawyer, music industry commentator and
doctoral researcher.

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1130823206875-smh.com.auhttp://www.smh.com.au/news/opinion/music-music-music--with-no-copyright-troubles/2005/11/01/1130823206875.htmlsmh.com.auSydney Morning Herald2005-11-02Music, music, music - with no copyright troublesThere's a popular gift that could have the recipient gone for a
song, writes Alex Malik.Opinion